Timing Your Debt Like a Pro

With Debt, timing is everything. Borrow at the right moment, and it’s rocket fuel for your dreams. Borrow at the wrong time, and it’s a weight around your neck. Let me share a story that taught me this lesson the hard way: Timing your debt is as crucial as choosing it.

When I expanded my practice, I needed new equipment to keep up with demand. A merchant cash advance sounded tempting—quick cash, no hassle! But the sky-high fees (think 30%+ effective rates) made me pause. Instead, I went for equipment financing, where the gear itself was collateral. The lower rates and predictable payments fit my cash flow like a glove, letting me scale without sweating the bills. That was debt timed right, aligned with my business’s growth.

But here’s where I slipped up: I once tapped a line of credit during a slow season, thinking I’d use it to cover payroll. Problem? I borrowed before I had a clear plan to boost revenue. I ended up paying interest on funds I didn’t fully need. 

Here’s the takeaway: Match your debt to your financial season. Use No cost EMI’s where you can. Use debt wisely to build your business or assets like real estate and avoid debt for liabilities. 

Check your cash flow projections before you borrow and always have an exit plan.

Your move: Map out your next six months. Need equipment or inventory or just want to build your asset column? Explore debt financing for low costs and ease of payment. Time your debt right, and it’ll propel you forward.

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